GSBulletIn: IBM – Has Been or Must Have?

24 May 2018
IBM – Has Been or Must Have? IBM is certainly not the first name that comes to our mind when thinking of technology stocks, let alone […]
 

IBM – Has Been or Must Have?

  • IBM is certainly not the first name that comes to our mind when thinking of technology stocks, let alone of the digital revolution. A P/E ratio of 10.5x and a dividend yield of 4.3% is indeed rather in line with boring utility than with “sexy” technology stocks.
  • That said, we recently saw IBM popping up as a top holding in fund (supposedly …) betting on blockchain technology. The stock is also prominently placed in ETFs such as “Amplify Transformational Data Sharing” (BLOK), “Innovation Shares NextGen Protocol (KOIN), “Reality Shares Nasdaq NextGen Economy” (BLCN), “Innovative Transaction & Process” (LEGR) and … “Gender Diversity” (SHE).
  • In other words, IBM offers at least some exposure to the digital revolution and other “hot” themes, and it does it at an attractive valuation and for a juicy dividend.
  • Conclusion: While the chart may suggest that IBM is a “Has Been”, we’d rather view it as a “Must Have” at current levels and below.
 

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